Gamasutra reports that the studio suffered layoffs around a year ago when parent Sega announced plans to restructure in order to “create a smaller company positioned for sustained profitability”. A representative said they couldn’t yet provide specifics on the studio’s closure, such as how many employees will be affected, as the move is still "under consultation”.

While it has shrunk its business over the past year, mainly across its publishing and distribution divisions, Sega recently acquired Company of Heroes developer Relic Entertainment from THQ for $26 million.